The first cryptocurrency Bitcoin (BTC) crossed the key resistance zone around $7,500 and in the next 24 hours the price of bitcoin could test the level at $7870. This opinion was expressed by the analyst of CoinDesk Omkar Godboul.
Below on the four-hour chart, you can see the recovery of the bitcoin price from $7270 to $7570.
Price recovery is confirmed by rising minima of bullish candles, rising values and divergence of the RSI oscillator, as well as overcoming the moving average with a period of 50.
The analyst also believes that the BTC will soon test resistance in the region of $7,870. The latter is on the descending trend line (white color on the chart), drawn through the highs of May 6 and 21.
This also means that “digital gold” is likely to overcome an important level of resistance, rising above the 50-week moving average (MA). The latter currently passes through the $7711 mark. Closing a weekly candle above this area will give confidence to the bulls.
Above on the weekly chart we see that for the first time since October 2015 the price broke down the moving average with a period of 50.
Regardless of the current moderate recovery, traders should still be cautious, because on the four-hour chart MA with periods of 50, 100 and 200 are tilted down. Also, bearish dominance is indicated by the descending slope of the moving average with a period of 10.
If the bulls do not take advantage of the current advantage and are not firmly secured in the next 24 hours above $7,500, the price may roll back to $7,270. The next level of support may be the $6900 mark.